M. Contingent liabilities
The Company creates a provision where there is a present obligation as result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
The Contingent Liabilities which are not recorded in the Financial Statements are as under:
a) The Company has imported Plant & Machinery under EPCG Scheme for which the company has legal obligation to export goods within Six year from date of licenses, the details of licenses are as follows:
If the company is not able to comply with this export obligation then the company shall be liable to pay custome duty of Rs. 5,73,72,271/-
The company has taken Bank Guarantee from Punjab National Bank in favor of DGFT to the tune of Rs.
73,69,200/- to obtain this Bank Guarantee the company has offered fixed deposit with PNB to the tune of Rs. 18,43,050/-.
b) The Company has imported Raw Material under Advance Licenses Scheme and is under a legal obligation to export goods within Eighteen Months from the date of license, however the company was not able to fulfil these export obligations, hence the company has made an application to the concerned authority to extent time period to enable it to fulfil the export obligations. This application is not yet decided upon by the concern authority. The details of aforesaid advanced licenses are as follows:
If the company is not able to comply with this export obligation then the company shall be liable to pay custom duty of Rs. 1,57,16,495/-
The Company has taken Bank Guarantee from Punjab National Bank in favor of DGFT to the tune of Rs.
32,72,000/- to obtain this Bank Guarantee the company has provided fixed deposit with PNB to the tune
of Rs. 10,33,000/- as collateral security.
c) The Company has not taken any Group Gratuity Policy or made any provision for likely Gratuity Liabilities which may arise in future.
d) There may arise a liability of the FY 2017-18 of INR 1647.79 lakhs in respect to appeal fled at CIT (A)
e) There may arise a liabilty of the FY 2016-17 and Q1 of 2017-18 of NR 51.44 lakhs wth respect to CST at NCT Delhi - DVAT
d Terms/ Rights attached to Equity Shares (eg.Dividend rights, Voting Rights)
The Company has only one class of equity shares having a par value of Rs.10/- Per share with voting rights as to dividend and voting. Each Holder of equity shares is entitled to one vote per share.
During the year ended 31st March 2024, no dividend is declared. (Previous year - Nil)
The Company has issued Bonus Shares to its existing shareholders of Company in the ratio of 78:1 held at the Board Meeting on 26th December, 2022.
The Company has made a Preferential Allotment of 5,92,000 Equity Shares having a face value of Rs. 10/-each fully paid up for the cash at a price of Rs. 30/- per equity share (including a share premium of Rs.20/-per equity shares) aggregating to Rs. 177.60 lakhs held at various Board Meeting 07th January 2023, 27th Febuary 2023, 17th March 2023 and 13th April, 2023.
The Company has increased its Authorised Share Capital from 1,00,00,000 equity shares to 2,00,00,000 equity shares having a face value of Rs. 10/- each held in Board Meeting dated 21st November, 2022.
In the event of Liquidation of the Company, after distribution of all preferential payments, the holders of equity
shares will be entitled to receive the remaining assets of the Company. The distribution will be in proportion to
the number of equity shares held by the shareholders.
2) The Company has availed machinery term loan facility of INR 54.86 lakhs at the ROI of 9.50% for 5 years from Mahindra & Mahindra Financial Services Limited against the charge on Plant & Machinery, Security Deposit of Rs. 16.46 lakhs @ 8.50% and Personal Guarantee by Mr. Shravan Suthar and Mr. Lalit Suthar against the EMI Repayment of INR 1.15 lakhs
3) The Company has availed machinery term loan facility of INR 206.00 lakhs at the ROI of 11.00% for 5 years from Mahindra & Mahindra Financial Services Limited against the charge on Plant & Machinery, Security Deposit of Rs. 20.60 lacs @ 7.50% and Personal Guarantee by Mr. Shravan Suthar and Mr. Lalit Suthar against the EMI Repayment of INR 4.48 lakhs
Unsecured Loans
1) Received from Directors & Directors Relative to the company. The terms and conditions of repayment of principal and payment of interest are not specified. Hence, the same is considered as long-term and interest-free.
2) Business unsecured loan from Deutsche Bank of INR 39.7 lakhs at the ROI 17.00% for 5 years repayable in EMI of 1.42 lakhs
3) Business unsecured loan from Ambit Finvest Private Limited of INR 50.00 lakhs at the ROI 16.00% for 3 years repayable in EMI of 1.75 lakhs
4) Business unsecured loan from HDFC Bank Limited of INR 35.15 lakhs at the ROI 15.00% for 3 years repayable in EMI of 1.21 lakhs
5) Business unsecured loan from Hero Fincorp Limited of INR 30.15 lakhs at the ROI 17.00% for 3 years repayable in EMI of 1.08 lakhs
6) Other loans represting interest rate at the 9.00%
The company has not defaulted on repayment of secured/ unsecured loans and interest during the year.
Secured loan
1) The Company has availed Medium term workig capital facility of INR 1100.00 lakhs at the ROI of 9.85% from Punjab National Bank against the Hypothecation of Stock & Books Debts and Personal Guarantee by Mr. Shravan Suthar,Mr. Lalit Suthar, Mr. Laxmichand Suthar and Mr. Pankaj Suthar.
2) The Company has availed Medium term workig capital facility of INR 1900.00 lakhs at the ROI of 12.50% from Mumbai District Central Co-op Basnk Ltd against the pari Pasu on Land, Building, Plant & Machinery, Office Premises no 301 & Shop No 01 and 02 and Personal Guarantee by Mr. Shravan Suthar and Mr. Lalit Suthar.
3) The Company has availed Letter of Credit facility of INR 730.00 lakhs in the form Cash Margin FDR @ 15% from Punjab National Bank against Personal Guarantee by Mr. Shravan Suthar,Mr. Lalit Suthar, Mr. Laxmichand Suthar and Mr. Pankaj Suthar.
4) The Company has availed GECL facility of INR 131.00 lakhs at the ROI of 9.25 % from Punjab National Bank against Extension of registred mortgage in favour of bank and Personal Guarantee by Mr. Shravan Suthar,Mr. Lalit Suthar, Mr. Laxmichand Suthar and Mr. Pankaj Suthar repayable in EMI of INR 8.19 lakhs.
5) The Company has availed term loan facility of INR 554.00 lakhs at the ROI of 14.40% from Punjab National Bank against the charge on Plant & Machinery, Factory Land & Building and Personal Guarantee by Mr. Shravan Suthar,Mr. Lalit Suthar, Mr. Laxmichand Suthar and Mr. Pankaj Suthar against the repayment of INR 46.13 Lakhs Quarterly.
6) The Company has availed machinery term loan facility of INR 54.86 lakhs at the ROI of 9.50% for 5 years from Mahindra & Mahindra Financial Services Limited against the charge on Plant & Machinery, Security Deposit of Rs. 16.46 lakhs @ 8.50% and Personal Guarantee by Mr. Shravan Suthar and Mr. Lalit Suthar against the EMI Repayment of INR 1.15 lakhs
7) The Company has availed machinery term loan facility of INR 206.00 lakhs at the ROI of 11.00% for 5 years from Mahindra & Mahindra Financial Services Limited against the charge on Plant & Machinery, Security Deposit of Rs. 20.60 lacs @ 7.50% and Personal Guarantee by Mr. Shravan Suthar and Mr. Lalit Suthar against the EMI Repayment of INR 4.48 lakhs
Unsecured loan
1) Business unsecured loan from Deutsche Bank of INR 39.7 lakhs at the ROI 17.00% for 5 years repayable in EMI of 1.42 lakhs
2) Business unsecured loan from Ambit Finvest Private Limited of INR 50.00 lakhs at the ROI 16.00% for 3 years repayable in EMI of 1.75 lakhs
3) Business unsecured loan from HDFC Bank Limited of INR 35.15 lakhs at the ROI 15.00% for 3 years repayable in EMI of 1.21 lakhs
4) Business unsecured loan from Hero Fincorp Limited of INR 30.15 lakhs at the ROI 17.00% for 3 years repayable in EMI of 1.08 lakhs
5) Business unsecured loan from Poonawalla Fincorp Limited of INR 34.78 lakhs at the ROI 17.25% for 5 years repayable in EMI of 1.24 lakhs
The company has not defaulted on repayment of secured/ unsecured loans and interest during the year.
Note No 30: Event occuring after the Balance Sheet Date
To the best of knowledge of the management, there are no events occuring after the Balance sheet date that provide additional information materially affecting the determination of the amount relating to the conditions exisiting at the Balance sheet date that requires adjustment to the Assets or Liabilities of the Company.
Note No 31 :
In the opinion of the board and as certified by the management, all expenses charged to revenue and cash transaction entered into are genuine and have been solely and exclusively incurred for the busniess of the Company
Note No 32 :
In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.
Note No 33 :
Some of Trade Receivables, Trade Payables, Loans and advances and other current and non current are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustment.
Note No 35 :Other statutory information
i) The Company has not traded or invested in crypto currency or virtual currency during the year.
ii) The Company does not have any benami property held in its name. No proceedings have been initiated on or
are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
iii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.
iv) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar
of Companies beyond the statutory period.
v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries
vii) The Company has not been declared wilful defaulter by any banks / financial institution or government or any government authority.
viii) The Company has not revalued its property, plant and equipment (including right of use assets) or intangible assets during the current year or previous year.
ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
x) The Company has not obtained any term loans from banks and financial institution during the year.
xi) The Company does not have any transactions and outstanding balances during the current as well previous year with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
36 Ratios : As per Annexure "A"
37 Figures of the previous year have been regrouped, reclassified and/or rearranged whenever necessary to compare with the figures of the current year.
Signatures to Notes 1 to 37
In terms of our report attached.
For N K Mittal & Associates For Durlax Top Surface Limited
Chartered Accountants
Firm Registration Number: 113281W
CA (Dr.) N K Mittal Shravan Suthar Lalit Suthar
Partner Managing Director Whole Time Director
Membership Number: 046785 DIN : 02985316 DIN : 02985324
Kalpana Joshi Komal Birla
Chief Financial Officer Company Secretary
Place : Mumbai Date : 29th May, 2024
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